Quick Answer
Mortgage lenders typically rely on older FICO models - FICO 2, 4, and 5 - which often score the same credit profile lower than FICO 8 does.
Key Takeaways
- FICO 2/4/5 are the dominant mortgage models.
- These models tend to be stricter on derogatory items.
- Tri-merge reports pull all three bureau-specific versions.
Why Mortgage Lending Lags
Mortgage lending uses older models in part because of regulatory and institutional inertia - and because the older models have long performance histories on mortgage portfolios.
Frequently Asked Questions
Why is my mortgage score lower than my credit card score?
Different models score the same data differently. Mortgage models are generally stricter on certain items than FICO 8.